The Landlord Thread

[TheHaitian]

Why is that a good idea?

And yes we are considering that too!

[zibazinski]

May 5, 2016 22:30:29 GMT -5 TheHaitian said:

Why is that a good idea?

And yes we are considering that too!

Because it might not work out

[Deleted]

May 6, 2016 7:51:59 GMT -5 @patstab said:

Is this a different job? I thought you had just gotten one not long ago?

I hate to answer for other people, but maybe it will prevent posters from saying things they wouldn't say with more information.

Carl has taken the job with HT, the one that requires he relocate to D.C.  So now he and his wife are trying to figure out what to do with their house.

He has good reasons for his decision.

Back to his question:  I would try a FSBO.  It should be in good shape because it is so new.  You and your wife are minimalists, too.  Around here, a $2300 house in the 'burbs is hard to rent.  Maybe that's cheap rent for your area, though.

[CCL]

May 3, 2016 15:12:33 GMT -5 TheHaitian said:

We are relocating... We are split between selling and renting it out!

On the fence of renting because no renters = no money and we would have to cover the shortfall. $2,300/month is a BIG shortfall to cover!

Sell and we break even or maybe make 10K (so lose the down payment money) but at least it is a clean cut.

We probably will have to hire a property manager since we will be 8 hrs away!

8 hours? That's a long way. Good luck with whatever you decide.

[resolution]

The long distance thing hasn't been bad for me, but the property management company just got bought out by another one and that may impact the pricing and quality of services.

It is probably not the best idea for Mr & Mrs C since it doesn't sound like they can cover both mortgages in case of an extended vacancy.  Hopefully real estate is hot enough in their current area to cover the transaction costs and give them a little extra if they sell.

[debthaven]

I think the idea of renting a room / small place is a good idea too. It would give you a chance to check out places to live, and your wife a chance to spend the time she needs winding up her current arrangement with her employer. She's in line for a promotion, so it's not the ideal time for her to move, even if they do let her work remotely.

This is why people discouraged you from buying Carl. You are young and part of your job is being able to move easily (which is not very compatible with your wife's job). What's done is done, but I think it's important to think about whether or not it's likely you could be transferred back to your part of MA. I haven't seen that possibility mentioned at all, so maybe it doesn't exist.

If it's likely, I'd try to hold onto the house. If it is unlikely, I'd sell. Now is the right time to sell a house with several bedrooms, so people with school-age kids are settled in for September.

But even if you do all the prep work required to sell, I wouldn't actually list it until you've been at your new job for at least a month or two or even three.

JMO of course. Best of luck to you, as always.

[Ombud]

DS has 1 rental (dn sell his townhouse when he bought house, turned it into a rental in May instead). So here's the thing. He rented it to a couple but it turns out they were not married, he was renting it for his GF. So guy prepaid 6 months rent. She moves in & then she stopped returning his phone calls. So he started calling DS. At the end of the six months there was no rent. DS took her to court, she did not show up, eviction approved, and the sheriff is coming out next week. Now the man says he will pay back rent. If my son accepts the back rent after eviction goes through, what happens? Does he have to let her back in? Or is the man paying this because he's concerned that it will wind up on his credit report?

[Bonny]

May 8, 2016 20:22:27 GMT -5 Ombud said:

DS has 1 rental (dn sell his townhouse when he bought house, turned it into a rental in May instead). So here's the thing. He rented it to a couple but it turns out they were not married, he was renting it for his GF. So guy prepaid 6 months rent. She moves in & then she stopped returning his phone calls. So he started calling DS. At the end of the six months there was no rent. DS took her to court, she did not show up, eviction approved, and the sheriff is coming out next week. Now the man says he will pay back rent. If my son accepts the back rent after eviction goes through, what happens? Does he have to let her back in? Or is the man paying this because he's concerned that it will wind up on his credit report?

He needs to talk to a lawyer who specializes in unlawful detainers. I assume he's already using one. But I would not accept the money now that the order to vacate has been issued. The guy still owes DS unpaid rent plus the eviction costs but if DS accepts the money during the eviction process he will have to start the process all over again.

And yes an unlawful detainer will show up on the guys (and the girlfriend's) credit report but not for 60 days after the eviction.

[Ombud]

May 9, 2016 10:42:08 GMT -5 Bonny said:

May 8, 2016 20:22:27 GMT -5 Ombud said:

DS has 1 rental (dn sell his townhouse when he bought house, turned it into a rental in May instead). So here's the thing. He rented it to a couple but it turns out they were not married, he was renting it for his GF. So guy prepaid 6 months rent. She moves in & then she stopped returning his phone calls. So he started calling DS. At the end of the six months there was no rent. DS took her to court, she did not show up, eviction approved, and the sheriff is coming out next week. Now the man says he will pay back rent. If my son accepts the back rent after eviction goes through, what happens? Does he have to let her back in? Or is the man paying this because he's concerned that it will wind up on his credit report?

He needs to talk to a lawyer who specializes in unlawful detainers. I assume he's already using one. But I would not accept the money now that the order to vacate has been issued. The guy still owes DS unpaid rent plus the eviction costs but if DS accepts the money during the eviction process he will have to start the process all over again.

And yes an unlawful detainer will show up on the guys (and the girlfriend's) credit report but not for 60 days after the eviction.

Thanks. Forwarded your msg to him. Nephew has strongly recommended using a property mgmt firm from now on but he won't and I really don't want to get too much in the middle of this -- just a quick suggestion then he's a big boy so figure the rest out. The guy tried to pay February in April, apparently pd January in March then tried to pay February late (2 wks ago b4 court -- they failed to show up) but it dn happen.

The guy dn live there, just her. I'm thinking he's freaking out bc his wife might see it if she pulls their credit report

[Bonny]

May 9, 2016 12:11:51 GMT -5 Ombud said:

May 9, 2016 10:42:08 GMT -5 Bonny said:

He needs to talk to a lawyer who specializes in unlawful detainers. I assume he's already using one. But I would not accept the money now that the order to vacate has been issued. The guy still owes DS unpaid rent plus the eviction costs but if DS accepts the money during the eviction process he will have to start the process all over again.

And yes an unlawful detainer will show up on the guys (and the girlfriend's) credit report but not for 60 days after the eviction.

Thanks. Forwarded your msg to him. Nephew has strongly recommended using a property mgmt firm from now on but he won't and I really don't want to get too much in the middle of this -- just a quick suggestion then he's a big boy so figure the rest out. The guy tried to pay February in April, apparently pd January in March then tried to pay February late (2 wks ago b4 court -- they failed to show up) but it dn happen.

The guy dn live there, just her. I'm thinking he's freaking out bc his wife might see it if she pulls their credit report

lol what an idiot!

[zibazinski]

Ugh

[zibazinski]

I'm no longer a landlord. Whoopee!!

[Miss Tequila]

Just had my offer accepted on a 5 unit.  I think it's a good investment but I will let you all judge. I'm only just starting to build my local investment inventory (I was buying in Florida but have sold 3 so I am down to 1 there). Here are the details.  I ran the numbers a bunch of times and it looks good to me but I will let the seasoned investors poke holes

Purchase price $112,000

Gross Rent - $35,700

Utilities - $9,022

Taxes - $2,653

Insurance - $1,863

Net income - $22,162

Some of the rents are low so I plan on raising those as the leases expire. I do realize that there will be repairs but this building is in fantastic shape. The seller really took care of the place. I think the drawback is the fact that the owner pays utilities (I normally look for separate utilities so the tenants pay their own). It has a new roof, new heating system, all units are remodeled. The windows are older but nothing too bad.

Does this look like a good investment? Is there something I am not taking into account? I hope not because I close in 3 weeks!lol

[milee]

May 20, 2016 15:20:49 GMT -5 Miss Tequila said:

Just had my offer accepted on a 5 unit.  I think it's a good investment but I will let you all judge. I'm only just starting to build my local investment inventory (I was buying in Florida but have sold 3 so I am down to 1 there). Here are the details.  I ran the numbers a bunch of times and it looks good to me but I will let the seasoned investors poke holes

Purchase price $112,000

Gross Rent - $35,700

Utilities - $9,022

Taxes - $2,653

Insurance - $1,863

Net income - $22,162

Some of the rents are low so I plan on raising those as the leases expire. I do realize that there will be repairs but this building is in fantastic shape. The seller really took care of the place. I think the drawback is the fact that the owner pays utilities (I normally look for separate utilities so the tenants pay their own). It has a new roof, new heating system, all units are remodeled. The windows are older but nothing too bad.

Does this look like a good investment? Is there something I am not taking into account? I hope not because I close in 3 weeks!lol

Looks good to me.  With that type of net income, you might want to look at springing for the cost to separate out the utility meters.  Yes, it's a big cost upfront but you're right about it being much more desirable for a LL to have separate utility meters.

[zibazinski]

My old tenant just called me. The one I've had for over 15 years. The new owner/landlord just raised her rent over $200 a month. I'm shocked and feel so sorry for her. The neighborhood doesn't command 1200 a month so it's just to get rid of her, I guess, but how stupid.

[Works4me]

May 21, 2016 19:03:19 GMT -5 zibazinski said:

My old tenant just called me. The one I've had for over 15 years. The new owner/landlord just raised her rent over $200 a month. I'm shocked and feel so sorry for her. The neighborhood doesn't command 1200 a month so it's just to get rid of her, I guess, but how stupid.

Why is that stupid? Is she a good tenant? Or

[zibazinski]

May 21, 2016 23:54:19 GMT -5 Works4me said:

May 21, 2016 19:03:19 GMT -5 zibazinski said:

My old tenant just called me. The one I've had for over 15 years. The new owner/landlord just raised her rent over $200 a month. I'm shocked and feel so sorry for her. The neighborhood doesn't command 1200 a month so it's just to get rid of her, I guess, but how stupid.

Why is that stupid? Is she a good tenant? Or

It's stupid because she's a good tenant who had been there for over a decade. It will also cost them several thousand dollars to fix the place up after she moves out so they lose a good tenant and a lot of money in the meantime. I just feel badly for her. She's got four kids, a dog, a job, and cancer, and now this.

[Works4me]

Thanks! That is rough.

[debthaven]

Miss T, that sounds good to me too, and I agree with Milee about the meters. You don't have to do it tomorrow but you should look into it / price it. I'm just curious, why did you decide to sell the places in FL?

Zib that's sad.

No bites on the studio. I don't think it's priced too high, but the fact that it's only 1 year into a 3-year lease means only an investor would buy it, and not a first-time buyer. (Yes, 3-year rental leases are standard here.) I have an appt with the agency on Thurs . I'm sure they will want us to lower the price, and we may, but I think the problem is that there's still 2 years to go on the lease.

We signed an exclusive agreement with them so in any case it will stay on the market for 3 months (it has been 3 weeks). We don't usually do that but they have been advertising it well, and they are literally on the same block.

We don't need to sell it but we'd like to. Otherwise we'll take it off the market at the end of the 3-month period, and try again next year. With any luck the tenant will opt to leave (the tenant can break the lease with 3 months' notice, the landlord can't.) But from what we hear, she's very happy there, so it seems unlikely. Most people try to sell rented apts with a year or less on the lease, so we knew it may not work when we listed it.

[Miss Tequila]

May 22, 2016 17:41:25 GMT -5 debthaven said:

Miss T, that sounds good to me too, and I agree with Milee about the meters. You don't have to do it tomorrow but you should look into it / price it. I'm just curious, why did you decide to sell the places in FL?

Zib that's sad.

No bites on the studio. I don't think it's priced too high, but the fact that it's only 1 year into a 3-year lease means only an investor would buy it, and not a first-time buyer. (Yes, 3-year rental leases are standard here.) I have an appt with the agency on Thurs . I'm sure they will want us to lower the price, and we may, but I think the problem is that there's still 2 years to go on the lease.

We signed an exclusive agreement with them so in any case it will stay on the market for 3 months (it has been 3 weeks). We don't usually do that but they have been advertising it well, and they are literally on the same block.

We don't need to sell it but we'd like to. Otherwise we'll take it off the market at the end of the 3-month period, and try again next year. With any luck the tenant will opt to leave (the tenant can break the lease with 3 months' notice, the landlord can't.) But from what we hear, she's very happy there, so it seems unlikely. Most people try to sell rented apts with a year or less on the lease, so we knew it may not work when we listed it.

I sold them to buy houses locally, including the one I live in

[Miss Tequila]

May 22, 2016 17:41:25 GMT -5 debthaven said:

Miss T, that sounds good to me too, and I agree with Milee about the meters. You don't have to do it tomorrow but you should look into it / price it. I'm just curious, why did you decide to sell the places in FL?

Zib that's sad.

No bites on the studio. I don't think it's priced too high, but the fact that it's only 1 year into a 3-year lease means only an investor would buy it, and not a first-time buyer. (Yes, 3-year rental leases are standard here.) I have an appt with the agency on Thurs . I'm sure they will want us to lower the price, and we may, but I think the problem is that there's still 2 years to go on the lease.

We signed an exclusive agreement with them so in any case it will stay on the market for 3 months (it has been 3 weeks). We don't usually do that but they have been advertising it well, and they are literally on the same block.

We don't need to sell it but we'd like to. Otherwise we'll take it off the market at the end of the 3-month period, and try again next year. With any luck the tenant will opt to leave (the tenant can break the lease with 3 months' notice, the landlord can't.) But from what we hear, she's very happy there, so it seems unlikely. Most people try to sell rented apts with a year or less on the lease, so we knew it may not work when we listed it.

3  year leases?  Eeks, I wouldn't like that at all. Good luck!

I have terminated my agreement to buy the 5 unit.  The inspection uncovered some large expenses that, while not deal breakers themselves, once added into the cost make the return less than I'm will to accept.  Owner is a cranky old man (which I actually find endearing...I love me some old people!) so I know he won't budge on the price. 

So back to the drawing board for me.

[Peace77]

May 22, 2016 0:55:24 GMT -5 @patstab said:

I have good tenants in Texas too and I did raise the rent but not by much. I imagine if someone buys

the duplex, the back will go to $650 and the front to $850. Currently they pay $450 and $595. I don't think they

can pay more, both are on fixed income. The taxes have raised so much and we need to redo the front unit, still

we can't sell it for what the new appraisal is, They raised it from about $50k or thereabouts to $195,000. I wish

it were worth that much. We will likely be lucky to get $100k in that neighborhood. 

Did you consider appealing the assessment?

[debthaven]

Miss T I hope you soon find something else that you're happier with.

Still no bites, it seems clear that this sale is not going to happen in the near future. It would have been great but oh well.

[Miss Tequila]

May 31, 2016 15:19:12 GMT -5 debthaven said:

Miss T I hope you soon find something else that you're happier with.

Still no bites, it seems clear that this sale is not going to happen in the near future. It would have been great but oh well.

Are you going to take it off the market and wait until it is closer to the lease expiration date?

[debthaven]

They have a 3-month contract, so we will let the contract run and expire, then take it off the market and try again next spring. At that point there will just be a year or so left on the lease.

I'm still hoping  something good happens in the next 7 or 8 weeks of course! But at this point I know it's not realistic.

[tskeeter]

May 19, 2016 1:02:28 GMT -5 alwaysbeoptimizing said:

Apr 15, 2016 15:26:34 GMT -5 alwaysbeoptimizing said:

whew, lots of updates.

so, got one bid from one contractor to build a garage, add 2,000 square feet to our house and remodel the existing 2,500 square feet.

Any guesses? Yeah, they want 2.4M for this. FKM. that's so ridiculous it's just beyond laughable. crazy.

anyway, my other bidder got back to me at a number that i can do and consider fair, so I've got to evaluate it.

Also, when we go home last night, one of my engineers had hit our water line, so i had to turn water off to our house, AND now talk to him about if he's on the hook to repair it or I am.  In the meantime, I've ordered the new pipe to run temporarily, but it looks like i'll be turning on/off at the street for a couple of weeks until i get the materials and time to repair it.

Also, we found one of the trees we're planning to remove as part of our remodel is leaning heavily and is a hazard, so I have an arborist doing an emergency removal today.  there goes $2,000

I can usually take them down, but wanted someone licensed, bonded and insured to drop that one.

but, i'm still giddy from getting the price from the second contractor who was about 80% lower than the first one.

we are gonna build a house!

Bad news on the adu... Would require 175k in shoring, so redesigning to lift it out of ground. Effing govt.

Also damn useless fire sprinklers will be 30k installed. Ripoff racket industry. Looks like I'll have to learn to design and install my own.

Gawd I hate the useless asshats that dream these regulations up

Also spending 10k to "study" the four inch wide drainage or "creek"

It's amazing anything gets done

That's why people leave CA.  So much onerous regulation that provides only questionable value to the residents.

[tskeeter]

Jun 3, 2016 11:40:41 GMT -5 alwaysbeoptimizing said:

Jun 2, 2016 21:46:41 GMT -5 tskeeter said:

That's why people leave CA.  So much onerous regulation that provides only questionable value to the residents.

I live in WA. they have moved up here over the last 30 years and are californicating the state pretty effectively. (I'm a WA native).

good for my RE values, sucky for the rest of life.

the transplants keep trying to pass a state income tax so it can be JUST like the place they left...

For some reason I thought you were near San Diego.

I'm in NV, so I understand your comment about Californication.  Even though I'm part of the migration, one of the things that attracted us to NV was the sense of self sufficiency and independence.  I keep finding myself a little put off when my neighbors, many of whom are former CA residents, fuss about a lack of public services, such as single stream recycling.  I'm more in the mode of the local bumper stickers that read "I don't give a f... How they do it in California" and "If California is so much better, go back"

[Bonny]

Jun 3, 2016 11:56:17 GMT -5 tskeeter said:

Jun 3, 2016 11:40:41 GMT -5 alwaysbeoptimizing said:

I live in WA. they have moved up here over the last 30 years and are californicating the state pretty effectively. (I'm a WA native).

good for my RE values, sucky for the rest of life.

the transplants keep trying to pass a state income tax so it can be JUST like the place they left...

For some reason I thought you were near San Diego.

I'm in NV, so I understand your comment about Californication.  Even though I'm part of the migration, one of the things that attracted us to NV was the sense of self sufficiency and independence.  I keep finding myself a little put off when my neighbors, many of whom are former CA residents, fuss about a lack of public services, such as single stream recycling.  I'm more in the mode of the local bumper stickers that read "I don't give a f... How they do it in California" and "If California is so much better, go back"

Lol, people just don't get that there are trade-offs and that there is a cost to everything.

If we ever move back to our AZ house it won't be to save money...'cuz we know we won't.

[Miss Tequila]

Jun 3, 2016 11:56:17 GMT -5 tskeeter said:

Jun 3, 2016 11:40:41 GMT -5 alwaysbeoptimizing said:

I live in WA. they have moved up here over the last 30 years and are californicating the state pretty effectively. (I'm a WA native).

good for my RE values, sucky for the rest of life.

the transplants keep trying to pass a state income tax so it can be JUST like the place they left...

For some reason I thought you were near San Diego.

I'm in NV, so I understand your comment about Californication.  Even though I'm part of the migration, one of the things that attracted us to NV was the sense of self sufficiency and independence.  I keep finding myself a little put off when my neighbors, many of whom are former CA residents, fuss about a lack of public services, such as single stream recycling.  I'm more in the mode of the local bumper stickers that read "I don't give a f... How they do it in California" and "If California is so much better, go back"

Lol! But I get yelled at when I say that about immigrants who come to the U.S. and then bitch that we need to make it like the shit hole they left. If it's so great go the hell back!

[zibazinski]

Jun 3, 2016 11:40:41 GMT -5 alwaysbeoptimizing said:

Jun 2, 2016 21:46:41 GMT -5 tskeeter said:

That's why people leave CA.  So much onerous regulation that provides only questionable value to the residents.

I live in WA. they have moved up here over the last 30 years and are californicating the state pretty effectively. (I'm a WA native).

good for my RE values, sucky for the rest of life.

the transplants keep trying to pass a state income tax so it can be JUST like the place they left...

They already ruined Oregon. It was just a matter of time.